Global shares ease on extended bond selloff

Global share markets retreated from high grounds on Tuesday, easing from their milestone peaks as political riot in Washington and surging COVID-19 infections restricted gains. However, a selloff in U.S. Treasuries rallied further as investors’ sentiment was fuelled by the government’s massive spending.

After hitting an all-time high on Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan crashed 0.5%. This was mainly from South Korea’s 2.6% drop as investors withdrew from KOSPI’s positive performance.

Japan’s benchmark index Nikkei reached a three-decade high as investors grew enthusiastic over another coronavirus vaccine. However, the index shed initial gains to trade 0.16% lower in its afternoon session.

A week has passed since the Capitol was attacked and caution still weighs on investors’ appetite. Moreover, Democrats forwarded a resolution to impeach U.S. President Donald Trump for insurrection.